According to the law firm press release, the complaint alleges that Spectrum misrepresented and failed to disclose that: (i) Spectrum had been self-inflicting the operational issues at its Ohio and Kansas facilities; (ii) these operational issues were, in fact, recurring in nature; (iii) these operational issues would continuously impact production, shipping levels and sales; and (iv) as a result of the foregoing, the Company’s financial statements were materially false and misleading at all relevant times.
On April 26, 2018, Spectrum issued a press release announcing its financial and operating results for the second fiscal quarter ended April 1, 2018, reporting a net income of $0.8 million compared to net income of $39.9 million in the previous year’s comparable quarter. The same day, Spectrum announced that its CEO was stepping down, effective immediately. Following this news, shares of Spectrum fell from a close of $94.23 per share on April 24, 2018, to a close of $75.01 per share the following day.
On June 12, 2019, the Court issued an Order consolidating cases and appointing Lead Plaintiffs and Counsel. Lead Plaintiffs filed an amended Complaint on July 12.
The parties notified the Court that they had reached an Agreement in Principle to settle the action on July 1, 2020. On August 10, the parties entered into a Stipulation and Agreement of Settlement. The Court issued an Order granting preliminary approval of the Settlement on September 29. On January 8, 2021, Class members filed an objection to the Settlement. On February 6, 2021, the Court issued an Order denying approval of the Settlement. On June 10, the Court appointed a Lead Plaintiff and Lead Counsel for a subclass of investors.